2 weeks ago
Nvidia Reportedly Pauses Some AI Cloud Revenue-Sharing Deals
Nvidia created a program to help small AI cloud companies get financing.
In return, those companies would share some of their revenue with Nvidia.
The Wall Street Journal reported that Nvidia paused some deals in the program last week.
The program was announced less than two months ago.
Nvidia might change the program later.
It might also combine the program with another one.
Nvidia said the larger business model is still active.
The company said it is changing because many customers want access to computing power.
Nvidia has paused some deals tied to its new financing initiative, the Wall Street Journal reported.
The initiative offered credit support to small AI cloud companies in exchange for a share of revenue.
The reported pause occurred last week, less than two months after Nvidia announced the program.
The Wall Street Journal said Nvidia could later revamp the initiative or merge it into another program.
Nvidia said its business model for expanding compute access remains in place and continues evolving amid high demand.
- Who
- Nvidia and small AI cloud companies are involved.
- What
- Nvidia reportedly paused some revenue-sharing deals connected to a financing initiative.
- Where
- The articles do not specify where the deals were paused.
- When
- The pause reportedly occurred last week and was reported on Thursday, less than two months after the program was announced.
- Why
- The initiative was designed to support the financing needs of small AI cloud companies; Nvidia said its broader model continues to evolve because of high demand.
Reported Pause
Nvidia's Continued Model
Status of the financing initiative
Reported Pause
The Wall Street Journal reported that Nvidia stepped back from some deals in the program last week.
Nvidia's Continued Model
Nvidia said the new business model that expands compute access remains in place and continues to evolve.
Future of the program
Reported Pause
The reported pause suggests the initiative may be reconsidered or changed.
Nvidia's Continued Model
Nvidia said the initiative could continue evolving in response to high demand, while the report said it might later be revamped or combined with another program.
Key facts
- Company
- Nvidia
- Reported action
- Paused some deals under a new financing initiative
- Program structure
- Credit support for AI cloud companies in exchange for a share of revenue
- Timing
- The pause reportedly occurred last week
- Program launch
- Announced less than two months before the reported pause
- Possible next steps
- Nvidia could revamp the initiative or fold it into another program
- Nvidia's position
- The broader business model remains in place and continues to evolve due to high demand
Quotes
Nvidia spokesperson
A spokesperson for Nvidia commenting on the status of the financing initiative
“The new business model … that opens up compute access to the fast-growing AI ecosystem is still in place and continues to evolve due to high demand.”
indianexpress.com
Sources
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